Credit Suisse analyst Stephen Ju contends that with Amazon having untapped (yes, untapped) potential in retail and the cloud, shares could still be looked at as undervalued at current levels (yes, undervalued after an 80% run over the past year).

Here is why Ju hiked his price target on Amazon to $2,000 from $1,950 on Monday:

"Groceries, home improvement/furniture and apparel, which are only 3%, 4% and 20% online, penetrated with $846b, $392b and $300b in dollars remaining offline in the US, loom as the largest opportunities for Amazon, as we called out in our sector outlook. To that end, Prime Now offering overlap with WFM locations continues to expand (now at 55% by zipcode) and 14% of stores have announced an explicit link up, and Prime Wardrobe graduated from beta and into general availability to all members. We also note the acquisition of PillPack to open up another ~$300b consumer TAM with very low online penetration. With AWS set to report ongoing revenue growth acceleration and Advertising contributing greater profit dollars, we believe 3Q guidance can break the seasonal pattern of reporting lower profit dollars than 2Q, and become the new normal. We maintain our Outperform rating and our investment thesis for AMZN shares is predicated on the following longer-term factors 1) re-establishment of ecommerce segment operating margin expansion, 2) ongoing margin benefit due to shipping loss moderation and 3) upward bias to AWS revenue forecasts."